"Shop Pay is the highest converting checkout on the Internet. It converts 36% better than competition and 15% more on average," stated Harley Finkelstein, highlighting the strategic advantage in payment processing.
— Harley Finkelstein
03Detailed Report
SHOP
Shopify Inc
Period
Q1 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 5, 2026
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Executive Summary
Shopify Inc. reported a strong start to fiscal year 2024, with total revenues increasing to $1.9 billion, up 23% year-over-year. This growth was largely driven by a 23% increase in Gross Merchandise Volume (GMV), alongside significant positive trends in payment penetration and subscription services. The company has further reinforced its market position through its commitment to product innovation and merchant support, allowing it to maintain competitive advantages in the rapidly evolving ecommerce landscape. Management emphasized their ability to maintain operational discipline while pursuing growth, supported by advancements in their AI and merchant support infrastructures.
Key Performance Indicators
Revenue
Increasing
1.86B
QoQ: -13.20% | YoY: 23.41%
Gross Profit
Increasing
957.00M
51.40% margin
QoQ: -9.89% | YoY: 33.47%
Operating Income
Increasing
86.00M
QoQ: -57.95% | YoY: 144.56%
Net Income
Decreasing
-273.00M
QoQ: -141.55% | YoY: -501.47%
EPS
Decreasing
-0.21
QoQ: -139.62% | YoY: -494.74%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $1.9 billion, up 23% YoY; Gross Profit: $957 million, up 33% YoY; Operating Income: $86 million, representing a substantial recovery from a loss of $193 million YoY; Net Income: -$273 million; Free Cash Flow: $232 million or 12% of revenue, doubling over the year. Additionally, Subscription Solutions revenue grew 34% YoY to $511 million. Operating expenses decreased by 4% YoY to $871 million, leading to improved margins.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.86B
23.41%
-13.20%
Gross Profit
957.00M
33.47%
-9.89%
Operating Income
86.00M
144.56%
-57.95%
Net Income
-273.00M
-501.47%
-141.55%
EPS
-0.21
-494.74%
-139.62%
Key Financial Ratios
Gross Profit Margin
Good
51.40%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
4.62%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.15%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.03%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
7.14
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.13
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-92.18x
Negative earnings make P/E ratio not meaningful
Price to Book
High Premium
11.32x
Very high premium suggests asset-light business model or lofty expectations
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